Change in Cap­i­tal Gains, Tax Cuts May Serve Hote­liers Well

The Economic Times - - Budget: Day After - Anu­meha.Chaturvedi@ times­

New Delhi: Hote­liers are largely muted in their re­ac­tion to the Bud­get, though they see ben­e­fits from mea­sures such as changes in cap­i­tal gains tax rules, curbs on cash trans­ac­tions and cut in tax rates for SMEs.

The usual in­dus­try re­quests like grant­ing in­fra­struc­ture sta­tus to ho­tels with a project cost up­wards of .₹ 25 crore have not been met in the Bud­get. In­dus­try lead­ers like Vikram Oberoi of The Oberoi Group said they were ex­pect­ing also a re­duc­tion in cor­po­rate tax rates for large en­ti­ties.

Patu Keswani, chair­man of Lemon Tree Ho­tels, said next year’s bud­get might have the roadmap of what fi­nance min­is­ter Arun Jait­ley has promised — a pro­gres­sive drop in cor­po­rate rates. “I think they will take one more year. And they will try and see how many peo­ple can come in the in­come tax net. If they get enough di­rect tax­a­tion, they will then play with in­di­rect and cor­po­rate tax rates,” he added.Mea­sures like re­duc­tion of tax rates to 25% for com­pa­nies with turnover of less than .₹ 50 crore are ex­pected to ben­e­fit stand­alone ho­tel own­ers.

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